Pakistan's industrial expansion risks stagnation unless competition policy is elevated to the centre of economic strategy, experts warned, arguing that weak market rivalry has entrenched inefficiencies and suppressed productivity.
These concerns were articulated during the sixth session of the Competition Commission of Pakistan's (CCP) ongoing Lecture Series on Competition Law, which focused on the 'Role of Industry in Promoting Market Competition.' The discussion examined the country's industrial structure, structural bottlenecks and the long-term consequences of limited competitive pressures.
Dr Nadeem Javed, Vice Chancellor of the Pakistan Institute of Development Economics (PIDE), told officials that industrial policy without effective competition rarely delivers intended outcomes. In the absence of robust market discipline, he said, initiatives often entrench inefficiency rather than stimulate productivity.
Pakistan's economy, he noted, continues to grapple with a persistent productivity gap. Several sectors-including cement, sugar, fertiliser, steel and automobiles-remain highly concentrated. According to Dr Javed, regulatory discretion and the protection of incumbents have constrained firm expansion, stifled innovation and reduced export competitiveness.
Drawing on international experience from South Korea, Vietnam, Turkey and Chile, he argued that countries escaping low-productivity traps typically relied on disciplined rivalry, openness to trade and investment, and strong rule-based enforcement. Without these elements, industrial strategies risk becoming instruments of rent protection rather than engines of economic transformation.
Welcoming participants, CCP Chairman Dr Kabir Ahmed Sidhu underscored that competition is not merely a legal or regulatory concept but a core economic policy instrument. He reaffirmed the commission's commitment to rigorous enforcement to enhance productivity, strengthen exports and promote sustainable industrial growth.
The session concluded with consensus that competition policy must be integrated into broader industrial and economic planning. Without effective enforcement and market openness, policymakers were cautioned, growth strategies may reinforce structural inefficiencies instead of fostering transformation.
The CCP's Lecture Series seeks to encourage informed debate on competition law and economic policy by engaging academics, practitioners and public officials, while strengthening understanding of how competitive markets underpin Pakistan's long-term development.